Allen J. Scott's article explores the concept of creative cities within the context of the new economy, examining how economic and cultural innovation in modern cities is shaped by technological changes, production structures, labor markets, and locational agglomeration. The article discusses the implications of globalization for creative cities, highlighting both their potential and their challenges. It argues that creative cities are not just about the "creative class" but also about the broader economic and social dynamics that underpin urban development. The article emphasizes the importance of policy in fostering creativity and economic growth, while also acknowledging the complexities and limitations of such efforts. It also discusses the role of externalities, product differentiation, and agglomeration in the development of creative cities. The article concludes by noting that while creative cities can offer significant economic and cultural benefits, they also bring about social tensions and inequalities. The article calls for a more nuanced understanding of the dynamics of creative cities and the need for policies that address both their potential and their challenges.Allen J. Scott's article explores the concept of creative cities within the context of the new economy, examining how economic and cultural innovation in modern cities is shaped by technological changes, production structures, labor markets, and locational agglomeration. The article discusses the implications of globalization for creative cities, highlighting both their potential and their challenges. It argues that creative cities are not just about the "creative class" but also about the broader economic and social dynamics that underpin urban development. The article emphasizes the importance of policy in fostering creativity and economic growth, while also acknowledging the complexities and limitations of such efforts. It also discusses the role of externalities, product differentiation, and agglomeration in the development of creative cities. The article concludes by noting that while creative cities can offer significant economic and cultural benefits, they also bring about social tensions and inequalities. The article calls for a more nuanced understanding of the dynamics of creative cities and the need for policies that address both their potential and their challenges.